AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

2/24/2020: Gold jumps on COVID-19 spread

Source: Bill Musgrave, American Gold Exchange

Austin — Extending last week's 3.9% rise, gold jumped another 1.7% to close near $1,676 as the global spread of COVID-19 rattled markets, undercutting risk appetite and stoking demand for safe havens. The metal has now rallied for nine straight sessions to its highest close on Comex since February 2013.

An abrupt rise in coronavirus cases outside of China is fanning fears that the epidemic may be more difficult to control than expected. Italy, Iran, and South Korea have reported sharp increases, and Afghanistan and Iraq now have their first confirmed cases.

Wall Street tumbled on worries that the epidemic may freeze supply chains and strangle trade, severely damaging a global economy already weakened by protracted trade conflict. The Dow tanked 3.5% while the Global Dow lost 3%.

Sovereign bond yields plunged in the US, Europe, and Japan as investors scramble for safety. Benchmark 10-year Treasury yields dropped near the record low of 1.32%.

The other precious metals were mixed, with silver jumping 1.9% while platinum and palladium more directly tied to industry and trade, slipped 0.2% and 3.2%, respectively.

At the Comex close: April gold surged $27.80 to $1,676.60; March jumped 35 cents $18.88; April platinum dipped $1.90 to $974.20; March palladium fell $84.10 to $2,521.30 an ounce.